Kanbaalifaru and Mahadhdhoo case withdrawn

The appeal case filed to Supreme Court, after the former Civil Court and High Court ordered Kanbaalifaru Investment and Mahadhdhoo Investment to repay the loans taken from Bank of Maldives (BML), has been withdrawn.

Medhuhenveiru MP Ali Azim and Alifushi MP Mohamed Nashiz are among those who were put down as guarantors for the loans obtained by Kanbaalifaru Investment and Mahadhdhoo Investment.

Speaking at the trial in Supreme Court yesterday, the lawyer representing MPs Ali Azim and Mohamed Nashiz requested to be allowed to withdraw the case, as an out-of-court settlement had been reached by the two parties.

The Supreme Court dismissed the case as requested, after BML stated that it did not have any objections.

The High Court earlier supported the Civil Court ruling regarding this case, and the judges that presided over the case declared unanimously that there were no grounds to change the Civil Court ruling in any way.

The Civil Court ruled on 19 October 2009 regarding the case against Mahadhdhoo, that the company had not repaid the $28,091,705.88 taken as demand loan and $34394.21 taken as letter of credit from BML. The court ordered the company to repay all this money within 15 days.

The court said that failure to do so would give BML the right to claim the mortgaged property, Reethi Beach Resort, and all property of Mahadhdhoo Investment.

Regarding the case against Kanbaalifaru Investment, the Civil Court ruled that the company had not repaid the $3,300,000.00 overdraft taken from BML according to the agreed terms. The court ordered the company to repay this money within one year, failure to do which would mean that the mortgaged Reethi Beach Resort, Mahadhdhoo and all property of the defendant should be handed over to BML.

Ahmed Thasmeen Ali told Sun Online tonight that the communications that took place in court today are the formalities of decisions that had been made six months ago, and nothing new had taken place. He said that the value of the mortgaged property claimed by the court exceed the amounts to be repaid for the loans.